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2014 (11) TMI 429 - ITAT MUMBAIDetermination of ALP – Selection of comparables – Held that:- Assessee has rendered marketing, sales support and coordination services to the group companies for their sales in India - The main transactions of assessee are in the nature of marketing and various sales support services, offers and quotes received from groups’ customers in India, providing information to group companies on market opportunities, trends follow up for payments and deliveries, etc. - this transaction of assessee was considered to have not been entered at ALP - Since assessee’s case does not fall within + 5% range, an adjustment was made - Assessee approached to the DRP, who has excluded Basiz Fund Services Pvt. Ltd., Cameo Corporate Services Ltd., Cyber Media Research Ltd., ICRA Management Consulting Services Ltd. And Rockman Advertising & Marketing India Ltd. as comparables for determining ALP - The DRP also directed for exclusion of ICRA Management Consulting Services Ltd. and Rockman Advertising & Marketing (India) Ltd. since these were loss making companies. DRP has excluded these companies from comparables on the plea that these companies are functionally different from that of assessee company - In respect of ICRA Management and Rockman Advertising &Marketing (India) Ltd., the DRP found that since the two companies were loss making companies, hence, these two comparables were also excluded and DRP directed to recompute the appropriate adjustment and find out if the same is + 5% margin - ICRA Management and Rockman Advertising & Marketing (India) Ltd., which were selected as comparables by assessee, was rejected by TPO - Since the DRP has confirmed the action of TPO, there is no reason for the exclusion – there is no merit in the appeal of the Revenue – Decided against revenue.
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